Mexico: Eni boosts Area 1 hydrocarbon estimates to two bln barrels

Italian oil company Eni has completed its 2017 drilling campaign in Area 1, offshore Mexico, with another successful well and increased the hydrocarbon in place estimate to two billion barrels.

Eni said on Tuesday it successfully drilled the Tecoalli 2 well, in the shallow waters of the Campeche Bay, offshore Mexico.

Thanks to the results of this well and the revision of the reservoir models of the Amoca and Miztón fields, the hydrocarbon in place estimate for Area 1 is boosted from 1.4 to 2.0 billion barrels (Bboe), of which approximately 90% oil and the remaining associated gas, the Italian oil company added.

The Tecoalli 2 well, located in Contractual Area 1, approximately 200 km west of Ciudad del Carmen, in 33 m of water depth, reached a final depth of 4420 meters encountering approximately 40 meters of net oil pay in the Orca formation, characterized by excellent quality sandstone reservoirs.

The well was then deepened to the Cinco Presidentes formation exploratory target, finding further 27 meters of net oil pay. A production test will now be executed and then the well will be temporarily abandoned. The Tecoalli field sits 24 km from the Amoca field and 13 km from the Miztón field.

Startup in 1H 2019

Eni will shortly submit the Development Plan (PoD) for Area 1 to the approval of the local authorities (Comisión Nacional de Hidrocarburos – CNH). As soon as the PoD is approved, Eni said it will sanction the development (FID), with production startup planned in first half 2019.

Eni is present in Mexico since 2006 and established its wholly owned subsidiary Eni Mexico S. de R.L. de C.V. in 2015.

Eni holds rights in four exploration and production blocks in the Sureste Basin, all as operator: Area 1 (Eni 100%), obtained in 2015 with the “Ronda 1- Licitación 2”, and Block 7 (Eni 45%), Block 10 (Eni 100%), Block 14 (Eni 60%), obtained in 2017 with the “Ronda 2 – Licitación 1”.